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HomeMy WebLinkAbout07/22/81 AGENDA WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, JULY 22~_ 1981 4:00 P.M. Call meeting to order Roll Call - Board Members: Barton, Chairman, Payne, Ratty, Kelmar, Oberholzer 1. Approve minutes of regular meeting of June 24, 1981. 2. Scheduled Public Statements 3. Correspondence Va) Letter from Rosedale Rio Bravo Water Storage District dated June 29, 1981 regarding City's Master Spreading Agreement. /b) Letter dated July 13, 1981 and attach- ments from George W. Nickel, .Jr. re~ garding Kern County Water Agency use of City's 2800 acres. c) Letter from Kern County Water Agency dated July 15, 1981 including a copy of Kern County Water Agency Comments on City of Bakersfield Proposed Master Spreading Agreement. 4. Request from stanley C. Hatch, special water attorney for hourly rate increase. - FOR BOARD ACTION. ~/5. Proposed Water Board response to Olcese Water District letter dated June 15, 1981 regarding outline of improvements to City's 2800 acres. - FOR BOARD ACTION. 6. Domestic Water Items. 7. Staff Comments 8. Board Comments 9. Adjournment >. 7~ AGENDA WE DNE S D~%Y, 4:00 P.M. Call meeting to order ~ ~ ~. Roll Call - Board Members: Ba Chairman, Payne, Ratty, K~, Ob~r~ zer 1. Approve minutes of regulaf~%neetin~6f June 24, 1981. 2. Scheduled Publi~ Statements ~ ~ ~ 3. Correspondence ~ ~--~ ~~-' a) Letter from Rosedale Rio Bravo Water  Storage District dated June 29, 1981 regarding City's Mast~ Spreading Agreeme~~ ~~ - ~~ ~ Letter dated July 13, 1981 and attach- ~/~ ments from George W. Nickel, Jr. re- garding Kern County Water Agency use of City's 2800 acres. ~ ~ ~  c) Letter from Kern County Water Agency dated July 15, 1981 including a copy of Kern County Water Agency Cements ~.~ City of Bakersfield Proposed Master . .,(~preading Agreement. ~A ~ ~ ~ ~ ~~'~ ~ ~ ~ ' ~ for houri 4. Request from Stanley C. Ha~h, special water attorney y rate increase. - FOR BOA~ ACTION.__ ~ ~) ~ ~ ~ ~ 5. Proposed Water Board response to Olcese Water District letter dated June 15, 1981 regarding outline of improvements to City's 2800 acres - FOR BOARD ACTION ~ ~ . . . . 6. Domestic Water Ite . ~ ~ 7. Staff Co~o n t ~~~?~~~ ~~ 8. ~rd Co~ents ~~~~~~~) 9./ Adjour~ent ~~~~-~--~ ~ ~ ~, ~ MINUTES WATER BOARD - CITY OF BAKERSFIELD WEDNESDAY, JUNE 24 ,1981 4:00 P.M. The meeting was called to order by Chairman Barton in the Depart- ment of Water Conference Room. The secretary called the roll as follows: Present: Barton, Ratty, Kelmar, Oberholzer Absent: Payne The minutes from the meeting, of June 17, 1981, were approved as presented. The 1981-82 Domestic Water Enterprise Operating and Capital Outlay Progam was presented to the board for approval and sub- mission to the City Council. At this time Mr. Hawley recommended that the Budget be carryed over until the next meeting, he stated the budget was originally prepared on an anticipated fifteen per cent growth in the Ashe Water System. He feels now that assump- tion is rather high. Mr. Ratty made a motion to defer the budget until the next meeting. The motion was passed. An Agreement of Sale between the City and California Water Service Company for acquistion by the City of the company's water distri- bution facilities within the~ai'rhavenWater System was presented to the board. At this time Mr. Hawley outlined the agreement and stated that the acquistion price was $220,000.00. In regard to the Agreement For Emergency Water SuppIy Mr. Kelmar questioned the language on page 3 item 3,after discussion the sentence was modified to include the word "jointly" and to read: The amount of water delivered shall be jointly estimated if conditions do not permit metered mea'surement. Mr. Oberholzer at this time stated that he had discussed with Mr. Stetson in respect to add- ing two (2)paragraphs on page six of the Agreement of Sale. After discussion between board and staff Mr. Oberholzer made a motion that the board approve the agreement subject to the amend- ments which have been proposed and recommend to City Council that they execute the agreement when both amendments are incorporated into this agreement. The motion was passed. Fairhaven~Wai~rSystem Ordinance Establishing and ~Adopting Rules of Operation was presented to the board. After discussion Mr. Kelmar made a motion to approve the Ordinance and recommend to City Council for adoption. The motion was passed. A Developer Agreement with Lunn Production Service Company to provide water to twenty~nine (29) acres located at the southwest corner of Burr and Gibson Streets from the Fairhaven Water System was presented to the board. At this time Mr. Kelmar questioned typographical error on page 2, item 2 which will be corrected. After discussion Mr. Kelmar made a motion to approve agreement and after the system is acquired recommend to City Council for execution. The motion was passed. A Developers Agreement with Tenneco Realty Development Corporation to provide water to Parcel Map 5726 from the Fairhaven Water System was presented to the board. The typographical error on page 2, item 2 will be corrected. Mr. Ratty made a motion that the agree- ment be approved and after the system is acquired it be recommended to City Council for execution. The motion was passed. ~. Bogart at this time presented a letter dated June 23, 1981, ~,from George W Nickel of La Hacienda, Inc. regarding Palm Mutual Water Company which was received just prior to this meeting. Mr. Kelmar made a motion to receive the letter and place on file. The motion was passed. There being no further business to come before the board, Chair- man Barton adjourned the meeting at 4:33 P.M. James J. Barton, Chairm~n City of Bakersfield Water Board Linda Hostmyer, Secretary City of Bakersfield Water Board WATER BOARD - CITY OF BAKERSFIELD ITEMS FOR AGENDA Agenda Section NEW BUSINESS Requesting, Department PUBLIC WORKS DEPARTMENT Date for Water Board Action JULY 22, 1981 1. Description of Item: Authorization of emergency action on repairing the pump bowls at Well No.'9, located on Quailwood Drive. 2. Comments: On July 14, Well No. 9 Stopped pumping due to failure of the pump shaft and bowls. If another well were to go out of service the system would not be capable of meeting peak summer demands. Cali- fornia Water Service Company has estimated the .repair cost to be $8,000.00 and recommends immediate action to 'get this well' back in service. Staff concurrs with this recommendation and asks for authori- zation for emergency action to waver bid proceedures. Funds are avait- ' able within the 1981-82 budget. 3. Suggested Action: Motion to approve and recommend to Council for adoption. Attachments: " Public liorks NOTE:' ~tems for Water Board Agenda' are to be submitted prior to 10 a.m. Friday for the Wednesday meeting of the following week. i~.. ~.~'~ C~TY OF BAKERSFiEL'D ~ · ~ DOblESTIC WATER ENTERPRISE ESTIMATEB REVENUES ANB EXPENSES BHBGET ~" FISCAL YEAR 1981-82 Est. Actual Proposed Projected FY 1980-81 FY 1981-82 FY 1982-83 REVENUES: Domestic Water Sales $1,337,600 $1,471,400 $1,618,500 Construction Water Sales 13,800 15,200 16,700 Interest Income 95,000 35,000 30,000 TOTAL REVENUES $1,446,400 $1,521,600 $1,665,200 OPERATING EXPENSES: Field Expenses: O & M Charges from Cai-Water $ 344,300 $ 413,200 $ 495,800 Power for Pumping 278,000 403,100 584,500 Other Maintenance 40,000 64,000 71,000 TOTAL FIELD EXPENSES $ 662,300 $ 880,300 $1,151,300 Administrative Expenses: Salaries and Fringe Benefits $ 58,000 $ 62,200 $ 70,000 Charges from Other City Depts. 10,000 11,000 12,100 Management Fee from Cai-Water 30,400 33,400 36,800 Consultant Charges (Engineer, Attorney, etc.) 33,900 37,300 41,000 Insurance Expenses 11,700 13,300 15,100 Property and Pumping Taxes 149,600 164,600 180,800 Misc. General Expenses 25,000 16,700 18,400 TOTAL ADMINISTRATIVE EXPENSES $ 318',600 $ 338,500 $ 374,200 NET OPERATING INCOME Before Depreciation $ 465,500 $ 302,800 $ 139,700 Depreciation (125,000) (167,500) (200,700) $ 340,500 $ 135,300 ($ 61,000) NON-OPERATING EXPENSES: Mainline Extension Refunds ($ 44,200) ($ 73,600) ($ 106,000) Net Operating Income before Capital Outlay Program $ 296,300 $ 61,700 ($ 167,000) Transfer to Capital Improvement Budget $ 296,300 $ 61,700 ($ 167,000) NET INCOME (LOSS) $ -0- $ -0- CITY OF BAKERSFIELD DOMESTIC WATER ENTERPRISE pRoPOSED CAPITAL OUTLAY PROGRAM FISCAL YEARS 1981-82 and 1982-83 (w/o Rate Increase) Proposed Projected FY 1981-82 FY 1982-83 Source of Funds Capital Improvement Reserves $167,500 $200,700 Net Operating Income 61,700 (167,000) Loan Repayment from Fairhaven Div. -0- 40,000 $229,200 $ 73,700 Pyoposed Application of Funds Additional Water Mains 1. Kern River crossing at Coffee Bridge Phase I $129,800 -0- (Phase II Est. cost $70,000) 2. Mohawk St. from Carrier Canal to Truxtun Ave. 1st payment $ 12,000 $ 12,000 ($48,000 remaining) 3. White Ln. Stine Canal to 645 feet west of Grissom St. 8,000 -0- Water Meters 45,000 '16,700' Pumping Station Imprqvements 1. Building at Station 9 in Quailwood Park $18,600 held over in FY 1980-81 Capital Budget. 29,400 (Est. cost $48,000i 2. Telemetering system at Station 6 5,000 -0- Additional Well and Pumping Plant 1. Station 12 on Higgin Oaks Dr. -0- $ 45,000 1st payment ($135,000 remaining) $229,'200 $ 75,700 *Construction of this project will not commence until funds are assured for the completion of Phase II. *Projected water meters costs for FY 1982-83 is $33,300 in excess of available funds ($50,000-16~700=$33,300). CITY OF BAKERSFIELD DOMESTIC WATER ENTERPRISE OPERATION SU~dARY Estimated 12/22/76 Actual Actual Actual Actual Proposed Projected 6/30/77 FY 1977-78 FY 1978-79 FY 1979-80 FY 1980-81 FY 1981-82 FY 1982-83 Revenues $170,838 $676,548 $1,098,519 $1,293,114 $1,446,400. $1,521,600 $1,665,200 Operating and Non-Operating 303,355 663,346 692,321 858,910 1,150,100 1,459.,900 1,832,200 Expenses Net Operating Income (129,772) 13,202 311,486 434,204 296,300 61,700 (167,0~0) (Loss) Before Capital Outlay Depreciation 38,763 81,776 94,712 110,855 125,000 167,500 200,700 Total Active Accounts in System 3,831 4,580 5,128 6,059 6,650 7,300 8,000 on June 30* ~' *City acquired system on December 22, 1976 with 3,368 total active accounts. "**Without rate increase. ' COMPA[ilSON 0[: WATER RATES BETWEEN CALIFORNIA WATER SERVICE COMPANY & CiTY OF BAKERSFIELD California City off treater Service Bakers£iel d Metered Per Month Comp_~n~_~, __ (Ashe) Service Charge 5/8 x 3/4 Inch $3.50 $3.89 $/4 Inch 4.40 4.28 1 Inch 6.00 5.84 1 1/:2 Inch 8.00 7.88 2 inch 11.00 10.50 3 Inch 20.00 18.95 4 Inch 27.00 25.78 6 Inch 45.00 42.83 8 Inch , 67.00 63.67 ' 10 I¢ch' 83.00 Quality Rates Per 100 Cu. Ft. CWS 0-3O0,Cu. Ft. 0.229 300 Cu. Et. or more 0.296 Ashe ~ 0-3000 Cu. Ft. 0.30 3000 Cu. Ft. or more 0.25 ~average annual consumption per residential units is estimated to be 42,600 Qubic Feet (Cu. Ft.) based on the Ashe Water Rate Study date April 1978. This %'ould make the average monthly consumption 35,500 Cu. Ft. therefore the average bill would be: ~eter Size Ashe Water 5/8" x 3/4" 3/4" 1" Service Charge $3.89 $4.28 $5.84 Quantity Charge $0 30 a) 3000 Cu. Ft. x ' 100 Cu. Ft. 9.00 9.00 9.00 b},(s5] oo-3o0o Cu. x .0.2S 100 Cu. Ft. 1.38 1.38 1.38 TOTAl ...... $14.27 $14.66 $16.22 California Water Service Charge Service Charge 3.50 4.40 6.00 Quantity Charge a) 300 Cu. Ft. x $0.229 100 Cu. Ft.. 0.69 0.69 0.69 b) (3S,500-300) x 0.296 100 Cu. Ft. 7.84 7.84 7.84 TOTAL ..... $1.2.03 $12.93 $14.53 California Water (fiat) For Single Family Residential Comparable Meter Sizes 6,000 Sq. Ft. or less $13.17 5/8" x 3/4" 6,001 to 10,000 Sq. Ft. 14.65 5/8" x 3/4" 10,001 to 16,000 Sq. Ft. 18.83 3/4" 16,001 to 25,000 Sq. Ft. 24.44 1" CONPARISON OF WATER RATES BETWEEN CALIFORNIA WATER SE1WICE COMPANY & CITY OF BAKERSFIELD California City of Water Service Bakersfield Metered Per Month Con?a, Service Charge 5/8 x 3/4 Inch $3.50 $3 89 3/4 Inch 4.40 4 28 i Inch 6.00 S 84 1 1/2 Inch 8.00. 7 88 2 Inch 11.00 10 50 3 Inch 20.00 18.95 4 Inch 27.00 25 78 6 Inch 45.00 42.83 8 Inch 67.00 65.67 10 Inch 83.00 Quality Rates Per 100 Cu. Ft, CWS 0-300 Cu. Ft. 0.229 300 Cu. Ft. or more 0.296 Ashe O-SO00 Cu. Ft. 0.30 3000 Cu. Ft. or more 0.25 ,, l'~Save'rago annual consumption per residential units is estimated to be 42,600 ..Cub~.c Feet (Cu. Ft.) based on the Ashe Water Rate Study date April. 1978. This ~would make the average monthly consumption 35,500 Cu. Ft. therefore the average bill would be: Meter Size Ashe Water 5/8" x 3/4" 3/4" 1" Service Charge , $3.89 $4.28 $5,84 Quantity Charge $0.30 a) 3000 Cu. Ft. x 100 Cu. Ft. 9.00 9.00 9.00 b) (35,500-3000 Cu. Ft.) x 0.25 100 Cu. Ft. 1.38 1.38 1.38 TOTAL ..... $14.27 $14.66 $i6.22 California Water Service Charge Service Charge 3.50 4.40 6.00 Quantity Charge a) 300 Cu. Ft. x $0.229 100 Cu. Ft. 0.69 0.69 0.69 b) (3S,500-300) x _0.296 100 Cu. Ft. 7.84 7.84 7.84 TOTAL ..... $12.03 $12.93 $14.53 California Water (flat) For Single Family Residential Comparable Meter Sizes 6,000 Sq. Ft. or less $13.17 5/8" x 3/4" 6,001 to 10,000 Sq. Ft. 14.65 5/8" x 3/4" 10,001 to 16,000 Sq. Ft. 18.83 3/4" 16,001 to 25,000 Sq. Ft. 24.44 1" ROSEDALE RIO BRAVO WATER STORAGE DISTRICT 2623 "F" St., Suite L P.O. Box 867 · Bakersfield, California 93302 · 325-4797 JUL 1981 -~i'Y O~ 8~KI~RSFIELL. oEPARTNtENT OF WAT~,'- City of Bakersfield Water Board 4101 Truxtun Ave. Bakersfield, CA 93301 Gentlemen: Re: Proposed Master Spreading Agreement Thank you for the recent draft of the proposed Master Spreading Agreement for the City and other 'entities. We are presently reviewing this document along with copies of correspondence between the City and those who have contracted with the City in' regard to the operation of the City's spreading works. We are hopeful that a master agreement which will provide a satisfactory use of the groundwater basin by all overlying entities can be developed. We believe you share a like desire. Upon review of the aQreements, there are still several Questions which are raised, and we are at this time formalizinQ those Questions and will present them to vou in the verv near future.- In the past, vou indicated your willingness to set up a meeting(s) so that this matter can be fully explored by all interested parties. We are hopeful you will proceed to do so. We will look.forward to hearin§ from you on the same. Very truly yours, ROSEDALE-RIO BRAVO WATER STORAGE DISTRICT Manager cc/Each Di rector W. Palmer D, Hardan 7-1-81 cc: Water Board (Full) S. Hatch T. Stetson '~ ~ MEMORANDUM -TO: City Water Board Ref. File: #1200-B City Water Department Staff FROM: George W. Nickel, Jr. DATE: July 13, 1981 SUBJECT: FOLLOW UP TO MEETING WITH CURLY BARTON AND GENE BOGART ON JULY llth At my invitation Curly Barton met with me and Tom Clark of my organization on the morning of July llth. In order to have City Water Department Staff input at the meeting, Curly also had Gene Bogart participate in the meeting. Gene's superior John Chafin was on vacation and not available. I had also attempted to include Tom Payne and Don Ratty in this get together; however, both of them were out of town on other matters. In any event~ I believe that we had a good meeting and exchange of ideas. At Curly's request, I am writing this memorandum to keep all of you up to date on our discussion and on the attached information that I passed out to Curly and Gene at the July llth meeting. As the appointed representative of the Olcese Water District and as a long time member of the Kern County Water Community, it is my sincere desire to work with all of you on a constructive program that will bring in supplemental water to benefit the City of Bakersfield and all of Kern County. In addition, I look forward to suggesting and working with programs on conjunctive water use and exchanges that are in the best interest of the Kern County Economy. I do hope that you will find my ideas to be constructive and workable. As a point of beginning, I will first refer to the information passed out to Curl.y and Gene. 1. You will find attached my memorandum of July 10tM to Curly entitled Proposed Agency Program on the City's 2800 acre Spreading Area. I believe that my most important suggestion for the City Water Board is to deal directly with the Kern County Water Agency on bringing supplemental California Aqueduct water into the City's spreading area. I believe that this will be a far more workable program than dealing separately with the Agency's Member Units. I feel that if you put the responsibility on the Agency, the Agency will come up with a program that will work for its Member Units and not involve the City on how to reach that agreement. On the matter of supplemental California Aqueduct water, I can accurately report that Ron Robie and his staff at the Department of Water Resources have no intention of dealing with any entity in Kern County other than the Agency. The other point of importance that I make in the memorandum to Curly, is that to deal with the Agency, I feel Page 2. ' ~a~ .the City will want to work with an extraction charge ~rather~.than a spreading charge. I believe that your staff and your consulting engineer Tom Stetson recognize the ~mportance of this contention. 2. You will also find attached a draft of what I have entitled Water Spreading and Recovery Agreement. You will note that this incorporates much of the language in your draft of a Master Spreading Agreement that has been sent out to a number of wat'er districts for comment; however, there are some very basic differences that I will note below. (a) As noted in my memorandum to Curly, I suggest that this agreement should only be between the City and the Agency rather than with a number of separate districts that must necessarily deal through the Agency. I feel that it will be simpler and more workable in every way for the City to have to deal only with the Agency. (b) I have set forth an extraction charge rather than a spreading charge. This i's necessary in order to make the program work for the Agency's Member Units such as Wheeler Ridge, Berrenda Mesa, Belridge, Lost Hills and Semitropic. (c) I have suggested that the City and its prior Contractors should always have a prior position on both water spreading and extraction from the City's spreading area. (d) I have suggested that all further physical improvements in the City's spreading area should be taken on by the Ag'ency. I do not anticipate that it will be difficult to get a commitment from the Agency o.n this point. It will certainly be in the best interest of the City and its prior Contractors to do so. Regarding my suggestions, I am sure that Curly will be reporting directly to you; however,. I can state that Curly thought that there would be merit in my encouraging the Agency · to directly make this type o~ proposal to the City Water Board. To begin with, Curly further suggested that this should be handled somewhat informally so that there can be a further exchange of ideas before a form of agreement is actually pFesented at either the Agency or the City Water'Board. 3. You will find attached a copy of my letter of July 7th. to Ron Robie, Director of the Department of Water Resources. As reported in my memorandum to Curly, I felt that I had a very satisfactory meeting on July 7th with Ron Robie and five (5) key members of his staff. To really make a conjunctive use water program in the City's spreading area, it does seem indicated that a physical means of getting the water out of the spreading area in a water short year is extremely important. As long as the State is willing to accept into the Aqueduct for distribution Page 3. · ~e~ ~ter from the City's spreading area, we have a conduit that will really work for getting water to such Agency Member Units as Wheeler Ridge, Belridge, Berrenda Mesa, tost Hills and Semitropic. Quite frankly, Ron Robie would prefer to have the State handle the surplus California Aqueduct water program and to use it as part of the State Water Project yield which would mean that water conserved in the underground for later use would benefit all State Project Contractors rather than just Kern County. I assured Ron Robie this would be totally unacceptable to Kern County. When I left the meeting with Ron Robie, I was satisfied that he would agree that the Kern County Water Agency's regulation of surplus water Aqueduct water by underground recharge and later recovery should be for the benefit of only Kern County. I know that the present Agency Board of Directors feel very strongly on this point and will take a very positive position on it with the State. ! do hope that I will have the opportunity to meet informally with City Water Board members and City Water Department Staff further on this overall subjecty I understand that there will not be a City Water Board meeting on July 15th, but that one will be likely scheduled on July 22nd. Prior to that time, I welcome the opportunity to meet with any or all of you. As I told Curly, my primary objective is to assist the City Water Board and its prior Contractors in having a fully workable and economic program in the City's spreading area on conservation and recovery of water for the City of Bakersfield. As long as we have satisfactory assurance that'the City and its prior Contractors have a priority position on the spreading and recovery of water, it will be important to work with the water community generally for enchancement of water supplies and the economic regulation of them. I look for'ward to hearing from any of you who would like to discuss this overall subject and the implementation of it. GWN: rjp c- Curley Barton Tom Payne Richard Oberholzer Phil Kelmar Tom Stetson John Chafin Gene Bogart MEMORANDUM TO: Curly Barton Ref. File FROM: George W. Nickel, Jr. DATE: July 10, 1981 SUBJECT: PROPOSED AGENCY PROGRAM ON THE CITY'S 2800 ACRE SPREADING AREA Reference is made to the Master Spreading Agreement which was distributed at the Water Board meeting on June 24th. At your June 24th meeting the Water Board approved sending this Draft of Water Mas~er Spreading Agreement to a number of entities that have indicated interest in a spreading and recovery program in or adjacent to the City spreading area.. I had an opportunity to look at this draft of agreement shortly before the meeting on June 24th. Consequently, I ~,noted. 'my concern to the Water Board t~at there was nothing in the draft of agreement that would permit entities spreading water in the City's 2800 acres to extract water by wells in the 2800 acres. I noted that the agreement really only seemed ,to have- potential value for enti'ties immediately adjacent to the City , spreading area. The possible benefitting entities would appear to be the James Pioneer Improvement District of North Kern which covers land largely owned by Tenneco and the West ~Kern County Water District and possibly the Rosedale District. I noted that the entity that could do the mo. st for bringing surplus Aqueduct water into the City spreading area was the Agency, which is the only entity in Kern County that has license to deal with the State of California on Aqueduct water. I went on to note that there are a number of ~Agency Member Units that would like to work through the Agency for'' a conjunctive use program which would necessarily inclu,de the right of water extraction from the City's spreading,area. After bringing these things to the attention of the Water Board, your staff and your consultants, Tom Stetson spoke forth and stated that he anticipated that the Agency and other entities would want the right of extraction from the City spreading area. However, language was inadvertently or otherwise left out of the agreement. Tom Stetson went~ on to say that he would recommend that any entity interested in setting up for water extraction should so indicate the Water Board. It seemed agreed that this type of extraction program would be given consideration by the Water Board. Since the June 24th Water Board meeting, I have had the opportunity to discuss this subject further with Tom Stetson, John Chafin and Gene Bogart. There does definitely, seem ~o be agreement amono them that water extraction should be ~ihc~l~ded in the Water Spreading Agreement. I have followed u'p thi~'contact with several meetings with Agency staff and ~d3rectors. I think that I have come up with a program that should be of mutual interest to both the City and the Agency. Moreover, it is a program that should find endorsement from the City's prior Contractors, namely Olcese and Buena Vista. Attached you will find a copy of my draft of a Water Spreading and Recovery Agreement between the City and the Agency. In this Agreement, you will note that the priority position on both spreading and extraction of water is preserved for the City and its prior Contractors. YOU will also note that the Agency will act for and on behalf of its Member Units. This means that the City will only have to deal with the Agency and not with the Member Units of the Agency. The ~Agency will have the responsibility of coming up with an overall program and the City will be able to stay out of the politics of how th|s may be achieved. One of the most important points that I have tried to make to the Agency has to do with th~ physical facilities that will be necessary in the City spreading area. I feel that the City and Olcese already have facilities that have done a good job at spreading a large 'amount of water. It is my contention that if the Agency is to come in on behalf of itself and its Member Units that all additional spreading facilities costs should be passed on to the Agency. After talking to a number of the Agency Member Units, I have satisfied myself that it will not be difficult to put this point over. I will also want to again stress that it is my concept that the City and its prior Contractors will at all times have a priority on spreading capacity and recovery facilities. The recovery of water fromilthe City spreading area is a matter that I have given much thought to. This has resulted in my meeting with the Director of the Department of Water Resources of the State, Ron Robie on July 7th. You will find attached a copy of my July 7 letter to Ron Robie. You will note that I have asked for the Agency to have the right to convey water into the California Aqueduct from wel~ls in~ the City spreading area. The California Aqueduct can then be a conveyance facility to reach the lands of the Agency's Member Units that can be served off of the California Aqueudct. I can report to you that I had a very sa~8~t~Y.meeting with Ron Robie and 5 key members of his staff. ! look forward to further discussion with you on this subject at our meeting on July llth. George W. N{ kel, Jr.. ~0~ Lake .Mrna Rood _ ~o ?.:.::'Annex" Ron Robie, Director Department of Water Resources State of California State Capitol Sacramento, California 0ear Rom: I very much appreciate your setting aside a few minutes to meet with-me this afternoon. As you know, I have been very active in the Ker~ C~'~nty Water ~cmmun[ty. ~ th~nk the record will show that I have maze positive co~t.ib,e'ti~ns !~ ~,,= p~St. [ wOu~ t~<e tO worK With yOU and the State of California in making some positive contributions in the future for the mutual benefit of the State and Kern County. At present, ! am wOrkimg closely with the City of Bakersfield on the development of its 2800 acre spreading area along the Kern River on con;unctive, water use programs. As a point of beginning, we have a program for spreading high flow Kern River Water Rights for recovery on a regulated basis. In doing so, an'evaluation has been made by the engineering firm of Ricks, Taylor 5 Meyers on the potential spreading capacity of the City's 2800 acre spreading area. This evaluation indicates t~at under properly controlled conditions in excess of 400,000 acre feet can be spread in a given yea/ for subsequent recover'! by wells to be installed in the area. This is substantially more spreading capacity than what is required to regulate our high flow Kern River water rights; consequently, it has become apparent that there is a good opportunity to also spread surplus California Aqueduct water when it is available. Such spreading can be 'accomplished by both direct spreading off the Cross Valley Canal and by some'exchanges of Kern River water for,California Aqueduct water. I look forward to giving you a little more detail on how these programs can be physically accomplished. When we encounter a d~y year like 1977, there is presently great urgency to ~ave a supplemental supply of water to augment the limited f~ow available in the California Aqueduct. Even if the Peripheral Canal is constructed, it appears that there will be years w~en supplemental water will be required to meet the contracted amounts of water that the Kern County Water Agency purchases from the State for its Member Units. 7-13-81 " cc:w/attach. S. Hatch, T. Stetson, G. Bogart, F.. Core ..Now;:ma~in9 the assumption that there is a well .organized s~readin, g~program on the City's 2800 acres, we will have a s~ppl'y~o~.water to draw on in a year of iow yield on the C~ornia A~educt. The next question is how do we get portiogs of that water supply to Member Unit Districts of the Kern County Water Agency lying along the California Aqueduct such as the Wheeler Ridge-Maricopa Water Storage District, the Be-lridge Water Storage District, the Berrenda Mesa Water District, the Lost Hills Water District and the Semitropic Water District. I have given this ~ubject substantial thought and have concluded that a delivery of good quality well water into the California Aqueduct out of the Buena Vista Aquatic Park will be a practical physical solution. It is'this particular program that I look for- ward to discussing with you this afternoon. It is proposed that the well water be pumped from wells in the City's spreading area. Such wells will discharge into what we refer ~o as the River Canal which is a concrete lined canal with a.capaclty of some 700 cfs that discharges into the Buena Vista Aquatic Park. Wi~h very little work, water can be passed from the Buena Vis~'a Aquatic Perk into the .C ....... [~ receive& in[o [he California Aqueduct', it will merely be a bookkeeping pro- Cedure'for getting a like amount of water from the California Aqueduct delivered to Member Units of the Kern County Water Agency ~hat I made reference to earlier. I think we have a physical solution here that works to the'mutual advantage of the State and the Kern County Water Agency on behalf of its Member Units. Through your cooperation in 1977, there actually was some well water pumped into the California Aqueduct from wells in t½e Wheeler Ridge- Maricopa Water Storage District for water credit and delivery; however, it was a very limited program as com- pared to the one that I ~have described above. Incidentally, another benefit from the program that I have described will be found at the Buena Vista Aquatic Park'. It will assure a supply and good circulation of water through the Buena Vista Aquatic Park even in a dry year like 1~77. As I am sure you know, the Buena Vista Aquatic Park is the most popular publlc recreation facility along the California Aqueduct in the ~an Joaquin Valley. A positive reaction from you to the program that I have outlined, and will discuss further with you, will be of' great benefit to the Kern County Water Community. As noted, I am working closely with, the City of'Bakersfield to maximize use'of its 2800 acre spreading area. I am also working directly with the Kern County Water Agency and a number of its Member Units. i would 1. ike to carry the word back to all concerned that the State will look favorably upon the program that I have suggested. It is clear to me that this program will make much bert.er use o'f surplus California Aqueduct water when it is available in a year like 19Sl. Sincerely, . ~ ,~z . . .,"// ~ /~ ~ 7 , - ~-~/ t ~;'~ '~--' //'-' ~ '.'~. ~ 1' ~ ~~' George ~. Nickel, Jr. - ~N: rjp .~,_DRAFT OF CONTRACT BEtWEEN,CITY OF BAKERSFIELD (City) and ~'~KERN COUNTY WATER AGEUCY (Agency) entited: x. WATER SPREADING AND RECOVERY AGREEMENT WHEREAS: A. The City owns approximately 2800 acres of land overlying the Kern County Groundwater Basin, hereinafter referred to as "City Spreading Area", which lands are set forth on a map entitled Exhibit "A", attached hereto and incorporated by reference herein; B. City has entered into Agreement No. 77-07 W.B. dated November 9, 1977, which Agreement has been amended as' set forth' in Agreement No. 78-12 W.B. dated June 27, 1978 and Agreement no. 81-76: dated ~priI I~, !981. AIl of the above said Agreements are jointly referred to herein as the "Basic Spreading Agreements"; C. From time to time City has spreading capacity excess to its own needs on City Spreading Area, and excess to requirements of its prior Contractors under the Basic Spreading Agreement, hereinafter referred to as "Excess Spreading Capacity". O. Agency is the Contractor with the state of California for itself and all Districts in Kern County for California .Aqueduct water. On behalf of itself and the Oistricts that it contracts for, Agency wishes to increase and maximize the use of California Aqueduct water for the benefit of the Ker'n County Water Community. E. To better accomplish its purposes, Agency wishes' to contract with City for the use of surplus capacity in City's spreading area for the spreading and subsequent recovery of water for beneficial use. F. Subject to the City and its prior Contractors having at all times the first priority on use of spreading capacity, and water recovery facilities, City is willing to permit Agency on behalf of itself and its contracting ~Olstricts' to use excess spreading capacity and to subsequently recover wa.tar for beneficial use subject to appropriate financial c~n~itions and arrangements. ~ NOW, THEREFORE, IT IS HEREBY AGREED AMONG THE PARTIES as follows: 1. FACILITY CONSTRUCTION, MAINTENANCE AND FINANCING. (a) City and 'its prior Contractors already have a spreading program and facilities to handle the spreading of large quantities of water. Agency agrees at its cost to improve and increase the spreading capacity in City's spreading area in order to a~commodate not only the water of City and its prior Contractors, but also water that Agency wishes to spread in the area on behalf of itself and the Districts re- presented by Agency. Agency agrees to follow the plans that have been developed for City by?Ricks, Taylor & Associates in increasing the spreading capacity in City's spreading area. Agency shall reimburse City for any payments City has made to Ricks, Taylor & Associates for the engineering studies and for the related aerial survey. Agency will not be required to reimburse City or its prime Contractors for spreading work and facilities constructed prior to date of this Agreement. In order to implement this program as rapidly as possible, Agency will not be required initially to install ail of the controls and facilities set forth in the Ricks, Taylor & Associates plans. By written agreement with City, Agency can work toward a scheduled program. If there should be such a program, it will be attached to this Agreement and made a part hereof. (b) When Agency spreads water in the future, Agency shall pay its proportionate share of the annual cost to spread water as the amount of such waters spread shall bear t° the total water spread 'in any given calendar year. Agency shall work directly with City on the annual operation and maintenance program. City shall have the control of decisions on maintenance work to be carried out and City shall be reimbursed for administrative expense. (c) Because the City and its prior contractors ~'oare to a substantlal extent relyin~ upbn high flow Kern River entitlement for spreading water, it is difficult to p~e~.ic'~ the years and times that such water will be available .~for spreading; however, Agency acknowledges and agrees that these and any other waters of City and its prior Contractors will at ali times have a priority for spreading such water over and above that of Agency and the Districts contracting with Agency. Aside from this stipulation, Agency will have the right to use excess spreading capacity in City's spreading area. Agency agrees to notify City when Agency has water for spreading. Agency agrees to establish measuring devices satisfactory to City for the measurement of Agency water flowing into City'~ spreading area. Agency. agrees to.terminate spreading to the extent that City or its prime Contractors have a need for the available spreading capacity or a portion thereof at any particular time. 2. OPERATION AND USE OF LAND AND FACILITIES. (al Agency may spread water obtained from the California Aqueduct or Kern River water obtained by exchange for California Aqueduct water. (b) Recovery of water bY Agency will be limited to :he net amount of water placed in underlying storage. In any given calendar year, Agency will be restricted to recovery of no more than 50~ of the'Agency w~ter in underground storage at the beginning of that particular calendar year. (c) At locations having the-prior approval of City, Agency may install wells and pumps in City's spreading area. Without prior written approval of City, water recovered by Agency may be used for agricultural purposes only. Agency may use for conveyance purposes either the Cross Valley Canal and/or the River Canal· To the' extent that Agency wishes to use the River ~anal, prior notice shall be given to City. City at ali times will maintain priority of use of the River Canal for the City and those entities having a present right of use. Subject to those restrictions, City will permit Agency to use the River Canal subject to paying a use charge for the Canal similar to what City' will c~arge to its prior Contractors when they make use of the ~a'pal. (d) City will own wells and pumps in City's ~preading area installed by City's prior Contractors. Agency will own wells .and pumps at locations authorized by City. To maximize efficiency of well use and control of underground water levels, City will retain control of the wells to be utilized during times when full well production is not required to meet the needs of City, its prior Contractors and Agency. Cost of well operation will.be calculated OM&R on each installed well and pump. City will be responsible for determination of 0M&R costs and they will be assessed to the authorized users under the terms of this Agreement. eXTRACT!n,, FEc In addition to other '~ayments required under this Agreement, Agency shall pay to the City the following noted extraction fees:- (al For water extracted from City's spreading area the same extraction charge to be assessed to Agency's prior Contractors, which at the present time is per acre foot. (b) The above noted extraction charge is subject to escalation on the basis of the July 1, 1981 Price Index "All Commodities" classifications for the Wholesale Price Indicies for Major-Commodity'Group published by. the U.S. Bureau of Labor Statistics. Adjustments will be made in January of'each year. (c) It is recognized that some of the Districts that the Agency will be contracting for will have the Agency ' spread Water in the City's spreading area, but.will recover such water from wells in their adjacent or nearby District '. areas. Agency agrees to notify City when this will be scheduled to occur. Extraction charges will then be made at the same rate noted above to the Agency ~hen the contracting Districts pump their wells for water recovery. Such Districts are to furnish the Agency and~ the City with an annual report. of pumping from all wells o~vned or cor~trolled by such Districts and all w'~ells owned by lando~.~ners within such districts~ ~p~ec. ifxying therein the amount of water stored pursuant to ~his Agreement which has been extracted in the preceeding ~alendar year. Agency shall furnish proof satisfactory to City that such Districts are balancing their underground water take by imported water acquired through Agency and/or by water acquired from other sources. 62(lX~.4~:o Ming Road . s -'houte 4, Box sss JUN 2 4 1981 ~io Brcrv'o Annex B~.~ersfielcL CA 93306 .([¥ Ot- t~E.~SFIEt, D Telephone 805/366-5581 uEPARTMENT OF WA~ June 23, 1981 City of Bakersfield ~ Water Board 1501 Truxtun Avenue Bakersfield, California 93301 Gentlemen: At your~ June 17, 198! Water Board meeting, the immediate need for water of the Palm Mutual Water Company and its request for service from the Olcese Water District was discussed. Letters from Palm Mutual Water Company and Olcese Water Di~strict to the Water Board are attached for your reference. Palm Mutual has requested both temporary service and annexation to Olcese Water District. It is our feeling that annexation of Palm Mutual to Olcese is premature and should not be considered until such-time that the District's program at ~the 2800 acres is complete and operational and the current annexation of City lands before LAFCO has taken p.lace. However, in recongition of the immediate water shortage in the area, we strongly support that temporary service be made avail- able to Palm Mutual at the earliest possible date. Owen F. Goodman, Attorney for Olcese Water District, has rendered a legal opinion that temporary service by Olcese to Palm Mutual may result in a permanent obligation by Olcese to serve the area. As we understand it, Mr. Goodman's opinion is based both on the facts of law and in recognition thatPalm Mutual's water shortage is permanent in nature rather than temporary.. Based on the above, there appears to be a dilemma as to how to provide temporary service to Palm Mutual without creating a permanent obligation. In order to get the issue off dead center and temporary service to the existing homeowners in Palm Mutual at the earliest possible date, we are Suggesting that the fo)lowing program be instituted: t. La ~acienda, Inc., is willing to enter into a water supply agreement with Palm Mutual to provide temporary service for a period of one year. Service shall be specifically limited to one year in order to provide Palm ~utual sufficient time to secure a permanent supply. City of Bakersfield - Water Board · ~ Page.:2. ~ ~ 2. The source of supply will be La Hacienda's deep well located.adjacent to the' Kern River in the southeast quarter of Section 1, Township 29 South, Range 29 East. The well has a rated capacity in excess of 3,500 gpm. 3. Wate~r will be delivered via the Kern River to Olcese Water District'S pump station and treatment plant located in the southwest quarter of Section 3, Township 29 South, Range 29 East. 4. La Hacienda will enter into a wheeling agreement with Olcese to treat and transport water to the terminus of the District's Comanche Pipeline. 5. Palm Mutual will take delivery of La Hacienda water at the terminus of the Comanche Pipeline. Palm Mutual will meter and transport water through temporary facilities to its existing system. 6. It will be explicitly stated in the agreement with Palm Mutual that: a) The water supply is non-firm and is available for one year only. b) Temporary water shall be limited in quantity to the requirements of existing structures within Palm Mutual. c) The one year water supply is separate and apart and in no way connected with water supplies of the City. of Bakersfield or Olcese Water District. 7. Recognizing that our deep well pumps at a rate in excess of 3,500 gpm and that the diversion on behalf of Palm Mutual will be less than 150 gpm, the cooperation of the Kern River Interests and/or Improvement District No. 4 of the Kern County Water Agency will be required to utilize water pumped in excess of the requirements of Palm Mutual. We believe that institution of the program set forth above will meet the immediate needs of the residents of Palm Mutual while at the same time providing full protection to Olcese Water District and residents of the City of Bakersfield. The one year period of temporary service from La Hacienda should provide Palm Mutual sufficient time to fully evaluate and explore alternative methods of securing a firm water supply. Your Board, the Olcese Water District, and Palm Mutual Water Company have gone on record as supporting that no further building permits be issued within the boundaries of Palm Mutual until such time that a firm water supply is secured for the ~ area. We are therefore sending a copy of this letter to the Board of Supervisors for their consideration. As a matter of protocol, we do not believe that it is necessary City of Bakersfield - W~te'r Board ~ ~Page 3. · ,; that the City Water Board take formal action on the program set forth above; however, we would like to discuss your reaction to the program as a non-agenda item at your Water Board meeting on June 24, 1981. S?~'n~'~e r e 1 y, ~- · ? .... ~eorge W. Nickel, Jr. GWN: rjp c- John Chafin Lou Deris, President Palm Mutual Water Company Owen F. Goodman, Esq. County of Kern Board of Supervisors Olcese Water District Board of Directors Ref. File: ~1275-E-m " '~ ''~ '. KERN COUNTY WATER AGENCY ~ .. Bakersfield. CaJifomia 93302 Tele~,c.,-.e: 303-6200 JackJ' ElliottG ThomsonF°x Dtvisioa~ 32 Floyd S. Cooley Division 4 ' Robert E. McCarthy Divi~on 5 Gene A. Lundquist Division 7 .! Secretary ' 1981 JUL ! ? 1981 ' July 15. Mr. James Barton. Chairman City Water Board City of Bakersfield 4101Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Barton: We have received and reviewed a copy of the Master Spreading Agreement proposed by the City of Bakersfield to provide for various entities to spread water for groundwater recharge in the City's spreading area. The Kern County Water Agency has carried out recharge programs in the past that · spread water in the City's spreading area, as well as the Kern River Channel and other available sites. It is proposed that such programs be undertaken in the latter months of 1981 and in the months and years ahead. Therefore, we agree with the need for a long-range agreement to be executed between the City and the Agency for groundwater spreading programs.' At present, there is interest by many water districts, water users and landowners in groundwater management programs that would (al maximize the amount of water.imported from both State and Federal Projects, (b) improve groundwater supplies by recharge, (c) provide by means of groundwater storage or banking more' dependable water supplies by increased pumping, and (d) exchanges of water available from surface and groundwater sources to improve efficiency and reduce irrigation costs. To facilitate.such objectives the Agency in addition to groundwater recharge, is participating in the Optimization Study and discussions with a number of districts to develop programs for improved groundwater management. It is expected that these efforts will result in joint programs whereby the Agency would obtain surplus State Project waters for recharge, place such water into groundwater storage, reallocate such stored and surface waters during years of restricted water supplies and participate in the financial aspects of the programs. I The spreading arrangements offered by the City would be advant- ageous to such programs. Some comments and suggestions are offered on Mr. ~J~mes B"arton P~'g~,~ Two July 15, 1981 the proposed Master Spreading Agreement and on several aspects of groundwater storage. Hopefully, these comments will lead to fruitful discussions on joint projects to extend the use and value of the City's spreading area to many water districts and water users. Robert E. McCarthy, Presid)b~ft Board of Directors Enclosure KERN COUNTY WATER AGENCY COMMENTS : r'.: ~' ON CITY OF BAKERSFIELD PROPOSED MASTER SPREADING AGREEMENT 1. The first article deals with construction and maintenance of improved facilities in the 2800 acre spreading area. It is recognized that the '- . City has substantial investment in the land encompassed by the spreading area and that costs will be incurred as the area is improved and managed. The proposal is for an annual fee to be paid by spreaders. It is suggested there by an option for a spreader to participate in joint .. financing of improvements. This may be less costly to the spreader over a period of years than amortizing and paying interest on initial improve- ment costs. Some entities'may be able to furnish "in-kind" equipment, labor and supplies toward improvements as an option to up-front financing or long-range amortization. 2. Operation and use may have to recognize the programs, legal authorities . ..:.. and objectives of various spreaders. For instance, the Agency will probably continue to carry out overdraft correction programs. In these programs, all participants agr.ee not to recapture the water placed in · .. storage and it remains in groundwater storage in perpetuity under the jurisdiction of the Agency. The Agency could not relinquish such rights to the City under the proposed agreement. 3. The agreement should set up a system of records and accounts and establish ;' the rights of each spreader to its share of jointly pooled water and any ...,., water under special reservations. 4. Spreading Fees - Ir'is recognized that the operation of the City's spread- ing area should be self-supporting. It may be possible to develop a · charge for spreading based on defraying operating costs rather than basing , ~', .' the fees on the concept of subsequent irrigation use. Theh an extraction fee may be in order at the time water would be withdrawn. This would ".'-'~'~TI''? eliminate the need to escalate a spreading fee fixed at the present . - 5. Most of the general conditions presented are 'reasonable, however, a few ' · should be discussed and revised to recognized Agency and joint project "~. needs. For instance, as in V(c), extraction of Agency water for use " ... thereof would also have to be subject to the consent of the Agency. ~,~ ; HATCH ,~r~ PARENT STAN~LEY C. ~ATCH A PROFeSSIOnAL CO~O~ATION AREA CODE 805 GERA~ B. PARENT ~1 EAST CARRILLO STREET TELEPHONE 963- 1971 =.TIMOTHY BUYNAK~JR. SANTA BARBARA, CALIFORNIA ~3102 POST OFFICE DRAWER 720 Mr. John Chafin Water Manager City of Bakersfield 1501 Truxtun Avenue , Bakersfield, California Dear John: Enclosed find a proposed modification of agreement dealing with the hourly billing rate applicable to govern- mental agencies represented by our firm. Effective July 1, 1981, senior attorneys will be billed at the rate of $105.00 per hour, member attorneys will be billed at the rate of $95.00 per hour, and associate attorneys will be billed at the rate of $90.00 Der hour. The purpose of this change is to attempt to keep all our governmental billings at approximately the same rate, which we established in 1965 for governmental agencies, corrected only for the effects of inflation. We would appreciate your having the Water Board consider and execute this modification by July 1, 1981. STANLEY C. HATCH For HATCH AND PARENT SCH:ah Enclosure W.B. MODIFICATION OF .AGREEMENT THIS AGREEMENT made this day of , 1981, by and between the CITY OF BAKERSFIELD, a political subdivision of the State of California, hereinafter referred to as "Bakersfield", and HATCH AND PARENT, a professional corporation of the State of California, whose professional employees are duly qualified and licensed to practice law in the State of California, hereinafter referred to as "Attorney." On October 5, 1978, Bakersfield and Attorney entered into an Agreement, 78-14 W.B., for Attorney's services which was amended by Agreement 80-02 W.B. June 25, 1980. The parties now wish to amend that Agreement to read: 1. The Fourth Paragraph on the first page of Agreement 78-14 W.B. is amended to read: "Attorney time shall be billed by Attorney and paid by Bakersfield at the rate of ONE HUNDRED FIVE DOLLARS C$105.00) per hour for senior attorneys, NINETY FIVE DOLLARS' ($95.00) per hour for member attorneys and NINETY DOLLARS ($90.00) per hour for associate attorneys of the firm." All other terms, conditions and provisions of 78-14 W.B. is amended by 80-02 W.B. and shall remain unchanged. IN WITNESS WHEREOF, the parties hereto have executed this Modification of Agreement on the date and year first above written. I-I~TCH AND PARENT A Pro~~ ~Cor~ratlon By ~ ~ STAN~LE~ C. HATCH} PreSident CITY OF BAKERSFIELD (WATER BOARD) By JA_~ES J. BARTON, Chairman, City of Bakersfield Water Board -2- 4:)Icese Water District ~ersheid. Cahforn~a 9~01 _ ~I~ ~ ~E~IE~ 22, ~gBZ James J. Barton Chairman of the City Water Board 1S01 Truxtun Avenue Bakersfield, CA 93301 Dear Mr. Barton: I have received the Agenda for the City Water Board meeting to be held later today. With the Agenda I also received a copy of your letter of July 14th addressed to me as President of Olcese Water District. I understand that this letter does not become official until approved by the City Water Board; consequently, I make the assumption that you would like the City Water Board to have my comments on your proposed July 14th letter before it is approved. My comments are the following: 1. On behalf of the Olcese Water.District, I want to make it abundantly clear that Olcese has every intention of living up to all requirements under Agreement #77-07 W.B. .2. When Agreement #77-07 W.B. was entered into, the City did not have a program for including other districts and entities in water spreading programs in the City's 2800 acres. As set forth in my letter to you of June 1Sth, Olcese does not object to increased spreading activities, but instead endorsed them subject only to the City and its prior Contractors retaining .a priority position on water spreading and recovery. 3. In my letter to you of June 1Sth, I suggested that other districts and entities that are extended the right to use the City's spreading area should pay the additional cost in the spreading area made necessary to accommodate the additional spreading water. This understanding will reduce or eliminate that type of expense being pa.ssed on to the City or Olcese. Having had direct contact with a number of Member Units of the Kern County Water Agency that would like to use the City's spreading area, I can give you absolute assurance that through the Agency these districts will agree to pay the cost of increasing the capacity of the spreading area. This certainly is in the best interest of the City and Olcese which is, of course, very much a part of the City. .~.~-'-James~J. Barton .' Page 2. 4. To clear up an apparent misunderstanding in your proposed letter of July 14th, Oicese is.not just committing itself to the installation of a single well, but to whatever wells are required to meet the terms in Agreement #77-07 W.B. The Olcese proposal to install one well initially this year was discussed and approved by John Chafin at a meeting held at the Water Department on June 10, 1981, ~hich was attended by Mr. Chafin, myself, Gene Bogart, Tom Clark and consulting engineers for the City. 5. Getting back to participation of other districts and entities in the City's spreading area, I am informed that there will be a City Water and Growth Committee meeting on July 24th for the purpose of discussing with the Agency its participation on behalf of itself and its Member Units in the City spreading area. This is to request that representatives of OtCese be permitted to participate in this July 24th meeting. Because Olcese has direct involvement in the improve- ment programs on the 2800 acres, it would seem appropriate that Olcese should be represented. In that connection, I would like you to know that I endorse the George Nickel Plan submitted to you under date of July 20th. Sincerely, Mel McColloch, President Olcese Water District ~/sg c: George W. Nickel, Jr. Gordon Ricks Tom Clark Ref. File: 1275-E-m CALIFORNIA DEPARTMENT OF WATER ~ ~~ July 14, 1981_ Mel McColloch, President Olcese Water District 1415 - 18th Street, Room 302 Bakersfield, CA 93301 Dear Mr. McColloch: This letter is in response to your letter of June 15, 1981 regarding Olcese Water District's obligations per Agreement No. 77-07 W.B., as amended. The City's present agreement with'Olcese District requires Olcese to furnish a schedule of all developments, including plans for spreading and extraction improvements, to the City. As you know, under the contract, Olcese is also required to construct all necessary improvements. Your letter in effect provides for no further development of any spreading facilities and provides for the construction of a single well adjacent to the River Canal "in the very near future." The City does not consider your June 15, 1981 letter to be an adequate delineation of the required schedule for the improve- ment and development of the necessary spreading and extraction facilities. Pursuant to Paragraph C of Article I of Agreement No. 77-07 W.B., as amended, the City will provide you, in due course, with an augumented plan which will, in all likelihood, incorporate one of the alternatives set forth in the Ricks, Taylor & Associates Optimizations Study for the 2,800-Acre Groundwater Recharge Area dated March 1981, a copy of which has previously been provided to you. A more explicit outline of all developments and improvements will be required. It is essential that any activity on the 2,800 acres engaged in by Olcese be coordinated with the City and its overall plan. 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · (605) 861-2715 ~e! McColloch Pa~e Two Olcese must keep in mind that it has never been the intention of the City to minimally utilize the spreading facility. The intention is to develop a plan which will optimize the untili- zation of this resource, for not only the City but others in- cluding the Olcese District. It is not possible to optimally use the 2,800 acres with sand dikes and one well. Any improve- ments constructed by Olcese must be part of and consistent with an overall development plan, and that is why the relevant language was included in the Agreement. Whatever facilities are constructed which are utilizable by your District for spreading purposes, must appropriately be charged to yOu. It is the present intention of the City to underwrite the initial costs of the long-term, shared spreading facilities, subject to reimbursement by using entities such as Olcese. Given the fact that the long-term facilities will be usable by others, it will be necessary to work out equitable finan- cial arrangements with your District for those long-term~ facilities whose use you will share. To that end, it is the present intention of the City to amortize the cost of these facilities over a ten-year period and charge each entity which utlilizes the spreading facilities an equitable portion of that cost. We will also be working out similar arrangements with other entities, when they indicate a desire to participate, for lump sum annual fees to defray these costs. These will be in addition to O & M costs, which should be radically reduced as a result of the construction of long-term facilities, and appropriate spreading or extraction fees. It is not our desire to delay your construction of the first well. To this end, the Water Board hereby approved construc- tion of a well in the northwest corner of Section 16, Township 30, Range 26 East, adjacent to the River Canal, subject to the following conditions: 1; Precise location and specific plans and specifica- tions for the well are to be submitted to and approved by City's Water Manager prior to construction. 2. All construction and inspections shall be subject to the supervision of the Water Department. 3. Olcese shall acknowledge its willingness to parti- cipate financially in the construction of whichever alterna- tive plan or modification thereof by Ricks, Taylor & Associates, Inc. is approved by the Water Board on an equitable basis and agree to negotiate in good faith to determine the appropriate amount. ~e! McColloch Pag~ Three If the above is acceptable, you may proceed with a submission of the plans and specifications for the well. If you have any questions, please contact Mr. Chafin. Very truly yours, CITY OF~BAKERSFIELD James J. Barton, Chairman Water Board JJB:lh cc: Thomas M. Stetson Stanley C. Hatch, Esq. , , MAINLINE EXTENSION AGREEMENTS REVISED REFUND COSTS Water Agreement Agreement Number 'Board Tract or Refund Refund of Number Developer Parcel Map Estimated Actual Services 79-27 Regional Mortgage TR 3916 $49,127.00 $48,441.54 37 79-28 Regional Mortgage TR 4016 $62,640.00 $52,420.17 44 *80-20 .Casa Linda Inc. TR 3827 Unit C $34,128.00 $28,933.38 34 / .*'80-21 Casa Linda Inc. TR 3827 Unit D $32,760.00 $29,690.89 58 80--34 Tenneco TR 4219 $89,405,68 $77,752.89 86 80-37 Tenneco TR 4276 ...$116,961.37 $83,780.74 45 80-47 Tenneco PM 5714 $56,027.66 $48,551.74 176 80-48 Tenneco TR 4277 Unit 3 $47,845.43 $43,191.91 61 80-49 Tenneco TR 4277 Unit 7 $49,205.41 $42,710.33 59 81-03 Tenneco TR 4277 Unit 6 $36,897.06 $32,719.82 46 81-06 Tenneco TR 4.277 Unit S $51,204.84 $46,539.72 64 81-07 Tenneco TR 4277 Unit 1 $50,988.01 $33,787.56 13 81-08 Tenneco ~ 4277 Unit 4 $47,529.47 $41,119.71 48 *To be reassigned from "Casa Linda Inc." to "Neptune Investment Company" to'~s. Jacqueline Jamison" at P.O. Box 323, Chico California 95926. **To be reassigned from "Casa Linda Inc." to "Neptune Investment Company" to "Charles V. King" at 1425 Foxworthy Avenue, San Jose, California 95118. ~ ~.. NEW MAINLINE EXTENSION AGREEMENTS TRACT AGREEMENT AGREEMENT NUMBER " OR REFUND REFUND OF DEVELOPER. PARCEL ~P ESTImaTED ACTUAL SERVICES Tenneco TR 4221 $43,582.95 $42,632.43 45 TR 4277 Unit 2 23,!05.46 23,105.46 17 TR 4277 Unit 8 59,556.04 56,294.87 61 PM S701 50,749.00 45,939.74 4 TR 4364 35,973.30 26,920.S0 22 TR 4356 81,057.78 72,663.87 95 TR 4363 45,242.91 69 TR 4289 46,424.47 71 PM 5337 7,360.03 7,360.03 3 TOTAL $393,051.94 387 ~ ~ )~J, ~<~ ~' ~ ~ L ~"~ CALIFORNIA July 14, 1981 Mel McColloch, President Olcese Water District 1415 - 18th Street, Room 302 Bakersfield, CA 93301 Dear Mr. McColloch: This letter is in response to your letter of June 15, 1981 regarding Olcese Water District's obligations per Agreement No. 77-07 W.B., as amended. The City's present agreement with Olcese District requires Olcese to furnish a schedule of all developments, including plans for spreading and extraction improvements, to the City. As you know, under the contract, Olcese is also required to construct all necessary improvements. Your letter in effect provides for no further development of any spreading facilities and provides for the construction of a single well adjacent to the River Canal "in the very near future." The City does not consider your June 15, 1981 letter to be an adequate delineation of the required schedule for the improve- ment and development of the necessary spreading and extraction facilities. Pursuant to Paragraph C of Article I of Agreement No. -77-07 W.B., as amended, the City will provide you, in due course, with an augumented plan which will, in all likelihood, incorporate one .of the alternatives set forth in the Ricks, Taylor & Associates Optimizations Study for the 2,800-Acre Groundwater Recharge Area dated March 1981, a copy of which has previously been provided to you. A more explicit outline of all developments and improvements will be required. It is essential that any activity on the 2,800.acres engaged in by Olcese be coordinated with the City and its overall plan. 1501 TRUXTUN AVENUE · BAKERSFIELD, CALIFORNIA 93301 · {805) 861-2715 Mel McColloch Page Two Olcese must keep in mind that it has never been the intention of the City to minimally utilize the spreading facility. The intention is to develop a plan which will optimize the untili- zation of this resource, for not only the City but others in- cluding the Olcese District. It is not possible to optimally use the 2,800 acres with sand dikes and one well. Any improve- ments constructed by Olcese must be part of ~and consistent with a~ overall development plan, and that is why the relevant language was included in the Agreement. Whatever facilities are constructed which are utilizable by your District for spreading purposes, must appropriately be charged to you. It is the present intention of the City to underwrite the initial costs of the long-term, shared spreading facilities, subject to reimbursement by using entities such as Olcese. Given the fact that the long-term facilities will be usable by others, it will be necessary to work out equitable finan- cial arrangements with your District for those long-term facilities whose use you will share. To that end, it is the present intention of the City to amortize the cost of these facilities over a ten-year period and charge each entity which utlilizes the spreading facilities an equitable portion of that cost. We will also be working out similar arrangements with other entities, when they indicate a desire to participate, for lump sum annual fees to defray these costs. These will be in addition to O & M costs, which should be radically reduced as a result of the construction of long-term facilities, and appropriate spreading or extraction fees. It is not our desire to delay your construction of the first well. To this end, the Water Board hereby approved construc- tion of a well in the northwest corner of Section 16, Township 30, Range 26 East, adjacent to the River Canal, subject to the following conditions: 1~ Precise location and specific plans and specifica- tions for the well are to be submitted to and approved by City's Water Manager prior to construction. 2. All construction and inspections shall be subject to the supervision of the Water Department. 3. Olcese shall acknowledge its willingness to parti- cipate financially in the construction of whichever alterna- tive plan or modification thereof by Ricks, Taylor & Associates, Inc. is approved by the Water Board on an equitable basis and agree to negotiate in good faith to determine the appropriate amount. Mel McColloch Page Three If the above is acceptable, you may proceed with a submission of the plans and specifications for the well. If you have any questions, please contact Mr. Chafin. Very truly yours, CITY OF BAKERSFIELD James J. Barton, Chairman Water Board JJB:lh cc: Thomas M. Stetson Stanley C. Hatch, Esq. ROSEDALE RIO BRAVO --- \ / ' ~23"F" St., ~ite L~ P.O. Box 867 · Bake~field, ~lifornia 93302 · 3254797 JUL 1 lg~ ~EP~M~ OF City of Bakersfield Water Board 4101 Truxtun Ave. Bakersfield, CA 93301 Gentlemen: Re: Proposed Master Spreading Agreement Thank you for the recent draft of the proposed Master Spreading Agreement for the City and other'entities. We are presently reviewing this document along with copies of correspondence between the City and those who have contracted with the City in regard to the operation of the City's spreading works. We are hopeful that a master agreement which will provide a satisfactory use of the groundwater basin by all overlying entities can be developed. We believe you share a like desire. Upon review of the aQreements, there are still several Questions which are raised, and we are at this time formalizing those Questions and will present them to you in the very near future. In the past, vou indicated your willingness to set up a meeting(s) so that this matter can be fully explored by all interested parties. We are hopeful you will proceed to do so. We will look forward to hearing from you on the same. Very truly yours, ROSEDALE-RIO BRAVO WATER STORAGE DISTRICT Manager cc/Each Di rector W. Palmer D. Hardan 7-1-81 cc: Water Board (Full) S. Hatch T. Stetson LAW HATCH ,~D PARENT STANLEY C. HATCt~ A PROFESSIONAL CORPORATION AREA CODE 805 S.TIMOTHY BUYNAK, JR. SANTA BARBARA, EALIFORNIA ~3102 OIAN~ N.~ATSIN~ May 20, 1981 Mr. John Chafin Water Manager City of Bakersfield 1501 Truxtun Avenue Bakersfield, California Dear John: Enclosed find a proposed modification of agreement dealing with the hourly billing rate applicable to govern- mental agencies represented by our firm. Effective July 1, 1981, senior attorneys will be billed at the rate of $105.00 per hour, member attorneys will be billed at the rate of $95.00 per hour, and associate attorneys will be billed at the rate of $90.00 Der hour. The purpose of this change is to attempt to keep all our governmental billings at approximately the same rate, which we established in 1965 for governmental agencies, corrected only for the effects of inflation. We would appreciate your having the Water Board consider and execute this modification by July 1, 1981. STANLEY C. HATCH For HATCH AND PARENT SCH: ah Enclosure MODIFICATION OF .AGREEMENT THIS AGREEMENT made this day of , 1981, by and between the CITY OF BAKERSFIELD, a political subdivision of the State of California, hereinafter referred to as "Bakersfield", and HATCH AND PARENT, a professional corporation of the State of California, whose professional employees are duly qualified and licensed to practice law in the State of California, hereinafter referred to as "Attorney." On October 5, 1978, Bakersfield and Attorney entered into an Agreement, 78-14 W.B., for Attorney's services which was amended by Agreement 80-02 W.B. June 25, 1980. The parties now wish to amend that Agreen~.ent to read: 1. The Fourth Paragraph on the first page of Agreement 78-14 W.B. is amended to read: "Attorney time shall be billed by Attorney and paid by Bakersfield at the rate of ONE HUNDRED FIVE DOLLARS ($105.00) per hour for senior.attorneys, NINETY FIVE DOLLARS'($95.00) per hour for member attorneys and NINETY DOLLARS ($90.00) per hour for associate attorneys of the ~firm." Ail other terms, conditions and provisions of 78-14 W.B. is amended by 80-02 W.B. and shall remain unchanged. IN WITNESS WHEREOF, the parties hereto have executed this Modification of Agreement on the date and year first above written. A Profe~io,~l CorDQration ST~N~LE~ C. HATCH, President CITY OF BAKERSFIELD (WATER BOARD) By Jk~ES J. BARTON, Chairman, City of Bakersfield Water Board